I'm a full-time college student and my parents claim me as a dependent -- do I still owe the tax due shown on my own Virginia return?

Plain-English summary

A full-time college student, reported as a dependent on her parents' 2020 federal and Virginia returns, filed her own 2020 Virginia resident return showing tax due. The Department issued an assessment based on that unpaid balance. She appealed, arguing that as a full-time college student and dependent, she shouldn't owe the assessment.

The Department explained the relevant filing rules don't have a special carve-out for dependents or full-time students. Federal law requires a dependent whose gross income exceeds the year's standard deduction to file a federal return; for 2020, that threshold was $12,400, and her gross income exceeded it, so she was required to file a federal return. Virginia law, in turn, requires a Virginia resident who's required to file a federal return to also file a Virginia return -- and separately, even a resident NOT required to file federally must still file in Virginia if Virginia adjusted gross income exceeds Virginia's own filing threshold, which her income also independently exceeded. So she was correctly required to file in Virginia regardless of her dependent or student status, and she did so, properly reporting a balance due because her employer withholding and any estimated payments didn't cover her actual tax liability for the year. Because Virginia law requires full payment of the tax shown due on a filed return by the due date, and the Department is authorized to assess any shortfall, the assessment was correct.

What this means for you

College students who are claimed as dependents on a parent's return

Being a dependent, or a full-time student, doesn't exempt you from Virginia's own filing and payment requirements. If your gross income exceeds the federal filing threshold for dependents (tied to the standard deduction) or your Virginia adjusted gross income exceeds Virginia's separate filing threshold, you're required to file -- and if your return shows tax due, you owe it regardless of your dependent status.

Students with part-time or summer jobs who assume a parent's dependent claim covers their own tax obligations

It doesn't. Your own income, withholding, and filing obligations are separate from your parents' return. If your withholding or estimated payments don't cover your actual liability, expect a balance due -- and if unpaid, an assessment.

Parents helping a dependent student file their first tax returns

Check whether the student's gross income exceeds that year's applicable federal standard deduction threshold (which determines the federal filing requirement for a dependent) and separately whether their Virginia adjusted gross income exceeds Virginia's own filing threshold -- either one independently triggers a Virginia filing obligation.

Common questions

Q: I'm a full-time college student and my parents claim me as a dependent -- do I still have to file my own tax return?
A: Yes, if your gross income exceeds the federal filing threshold for dependents (based on that year's standard deduction) or your Virginia adjusted gross income exceeds Virginia's own filing threshold. Dependent and student status don't create an exemption from these rules.

Q: My return showed tax due because my withholding wasn't enough -- can I get out of paying it because I'm a dependent?
A: No. Once you file a Virginia return showing tax due, Virginia law requires you to pay the full amount by the due date regardless of your dependent or student status; unpaid amounts can be assessed by the Department.

Citations and references

• Va. Code § 58.1-301 (Virginia income tax terminology/conformity to the Internal Revenue Code)
• Va. Code § 58.1-341 (a Virginia resident required to file a federal return must also file a Virginia return; also required if Virginia AGI exceeds the filing threshold)
• Va. Code § 58.1-321 (Virginia filing threshold/exemptions)
• 26 U.S.C. § 6012(a)(1)(C)(i)(II) (a dependent whose gross income exceeds the standard deduction must file a federal return)
• Va. Code § 58.1-351 (tax shown due on a return must be paid in full by the due date)
• Va. Code § 58.1-1812 (Department authority to assess unpaid tax)

Subject

Administration: Returns - Filing Requirements, College Student

Source

• Landing page: Virginia Laws, Rules & Decisions
• Ruling: P.D. 22-98

Original ruling text

May 26, 2022

Re: § 58.1-1821 Application: Individual Income Tax

Dear *:

This will reply to your letter in which you seek correction of the individual income tax assessment issued to * (the “Taxpayer”) for the taxable year ended December 31, 2020.

FACTS

The Taxpayer was a full-time college student and was reported as a dependent on her parent’s 2020 federal and Virginia income tax returns. She filed a 2020 Virginia resident return showing a tax due, and an assessment was issued based off that return. The Taxpayer appealed, contending that she was a full-time college student who was a dependent of her parents.

DETERMINATION

Virginia Code § 58.1-301 provides, with certain exceptions, that the terminology and references used in Title 58.1 of the Code of Virginia will have the same meaning as provided in the Internal Revenue Code (IRC) unless a different meaning is clearly required. Conformity does not extend to terms, concepts, or principles not specifically provided in the Code of Virginia . For individual income tax purposes, Virginia “conforms” to federal law, in that it starts the computation of Virginia taxable income (VTI) with federal adjusted gross income (FAGI). Income properly included in the FAGI of a Virginia resident is subject to taxation by Virginia, unless it is specifically exempt as a Virginia modification pursuant to Chapter 3 of Title 58.1 of the Code of Virginia .

Virginia Code § 58.1-341 provides that a Virginia resident who is required to file a federal income tax return is also required to file a Virginia income tax return, unless the resident is exempt from filing under Virginia Code § 58.1-321. Additionally, even if a resident is not required to file a federal return but has Virginia adjusted gross income that exceeds the filing threshold, the resident is required to file a Virginia individual income tax return.

Under IRC § 6012(a)(1)(C)(i)(II), a dependent whose gross income is in excess of the standard deduction for the year is required to file a federal income tax return. For the 2020 taxable year, the standard deduction was $12,400.

The Taxpayer’s gross income for 2020 exceeded $12,400 and, as required, she filed a federal income tax return. Further, even if she had not been required to file a federal income tax return, her Virginia adjusted gross income exceeded the filing threshold for filing a Virginia income tax return under Virginia Code § 58.1-321 and was, thus, required to file a Virginia income tax return regardless of the fact that she was a full-time college student and a dependent. In compliance with Virginia law, she filed her 2020 individual income tax return.

The Taxpayer’s 2020 return reported a tax due because employer withholding or estimated payments were insufficient to cover her liability. Pursuant to Virginia Code § 58.1-351, each individual who is liable for the income tax must pay the full amount of tax reported on the face of the return on or before the due date of such return. When required payments are not made, the Department is authorized to issue assessments under Virginia Code § 58.1-1812.

Accordingly, the assessment issued for the taxable year ended December 31, 2020 is correct. The Taxpayer will receive an updated bill, which will include accrued interest to date. She should remit the balance due within 30 days of the bill date to avoid the accrual of additional interest and possible collections actions.

The Code of Virginia sections sited are available on-line at www.tax.virginia.gov in the Laws, Rules & Decisions section of the Department’s web site. If you have any questions regarding this determination, you may contact * in the Office of Tax Policy, Appeals and Rulings, at ***.

Sincerely,

Craig M. Burns

Tax Commissioner

AR/3913.B